TAX FRAUD TECHNIQUES IN DIRECT TAXATION: EVIDENCE FORM THE FEDERATION OF BiH

The structure of the tax system in Bosnia and Herzegovina is determined by the Constitution of BiH and the constitutions of both entities, which significantly contributes to its complexity and susceptibility to tax evasion and avoidance. Given that tax evasion remains a persistent tendency among taxpayers, effective prevention requires the identification of its dominant manifestations, motives, and consequences. The aim of this research is to analyse the most common tax fraud techniques within the system of direct taxation, drawing on the experiences of tax inspectors responsible for monitoring compliance with direct tax regulations in the Federation of Bosnia and Herzegovina. The study employs a qualitative research design based on semi-structured interviews with tax inspectors, with the collected data analysed using interpretative content analysis. The findings indicate that tax evasion most frequently manifests through expense-related manipulations, revenue concealment and fiscalisation-related practices, as well as transactions with related parties, with transfer pricing being particularly prominent among large taxpayers. The results also highlight the importance of early detection and targeted inspections in reducing fiscal losses. These findings provide a basis for strengthening tax supervision and designing more effective preventive mechanisms within the direct tax system, thereby contributing to improved fiscal discipline and a more transparent business environment in the Federation of Bosnia and Herzegovina.